Tank Car
Mileage
Equalization
Jim Pinson
May 14, 2009
Pueblo, CO
© 2007 Railinc. All rights reserved.
Agenda
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Governing Document – RIC 6007 N
Accumulation of Mileage
Calculation of Excess Empty Miles
Adjustments
Monthly Reports
Annual Billing
Disbursement
© 2007 Railinc. All rights reserved.
GOVERNING DOCUMENT
RIC 6007 N
© 2007 Railinc. All rights reserved.
RIC 6007 N
© 2007 Railinc. All rights reserved.
RIC 6007 N
© 2007 Railinc. All rights reserved.
RIC 6007 N
© 2007 Railinc. All rights reserved.
RIC 6007 N
• Actual Loaded and Empty Mileage must
be Reported to AAR
• Empty Mileage can Exceed Loaded
Mileage by up to 6%
• Excess Empty Mileage is Billed at $0.57
per Mile
• Empty Cars Under Revenue Billing are not
Included
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RIC 6007 N
• Empty Cars Moving FRA, DOT or AAR
Shop Programs are not Included
• No Adjustments for Carrier Error or Carrier
Convenience
• Adjustments Allowed for Accounting and
Clerical Errors
• Adjustments Allowed for Misroutes
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ACCUMULATION OF MILEAGE
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Accumulation of Miles
• Car Movement Occurs
• Carrier Determines the Number of Miles
Travelled
• Carrier Reports Mileage to Railinc via
CHDX
• Railinc Adds Reported Miles to the
Equalization Register
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CALCULATION OF EXCESS
EMPTY MILES
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Calculation of Excess Empty Miles
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Pull Accumulated Loaded Miles
Pull Accumulated Empty Miles
Multiply Loaded Miles by 1.06 (106%)
Result is Allowable Empty Miles
Subtract Allowable Empty Miles from
Accumulated Empty Miles
• Result is Excess Empty Miles
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Calculation of Excess Empty Miles
• For Example:
– Accumulated Loaded Miles = 1,000
– Accumulated Empty Miles = 2,000
– 1,000 Accumulated Loaded miles
– X1.06
– =1,060 Allowable Empty Miles
– 2,000 Accumulated Empty Miles
– -1,060 Allowable Empty Miles
– = 940 Excess Empty Miles
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ADJUSTMENTS
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Adjustments
• Two methods
– Individual Claims
– On-Line ER1 (Formerly a Paper Document
Faxed to Railinc for Data Entry)
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Adjustments
• Valid Reasons for Adjustments
– Empty Moves Under Revenue Billing
– Movements under FRA, DOT or AAR Shop
Program
– Erroneous Reporting (The Mileage Reported
was not Travelled)
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Adjustments
• Invalid Reasons for Adjustments
– Carrier Error
– Carrier Convenience
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MONTHLY REPORTS
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Monthly Reports
• Letter that
Accompanies the
Reports
• Advises Which Month
is Reported
• Contact Information
• Distributed via E-Mail
to FindUS.Rail
Contact
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Monthly Reports
• Carrier Report Shows Mileage Reported
– By Car Mark
– Buy Month
– Excess Empty Miles are Shown for Each Mark
– The Total Page Shows an Estimate of Funds
to be Received by the Carrier
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Monthly Reports
• Car Owner Report Shows Mileage
Reported
– By Carriers
– By Month
– Excess Empty Miles are Shown for Each
Carrier
– The Total Page Estimates the Amount to be
Billed
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ANNUAL BILLING
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Annual Billing
• Excess Empty Miles are Calculated
– 1,000 Loaded Miles Reported
– X1.06
– =1,060 Allowable Empty Miles
– 2,000 Empty Miles Reported
– -1,060 Allowable Empty Miles
– = 940 Excess Empty Miles
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Annual Billing
• The Rate is Published in RIC 6007, Item
187
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Annual Billing
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Annual Billing
• 940 Excess Empty Miles
• X.57 Per Mile
• =$535.80
• Annual Equalization Bills are Created from
a Legacy system – Not FindUS.Rail
• Address Changes Should go to Railinc
CSC (csc@railinc.com)
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DISBURSEMENTS
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Disbursements
• Two Disbursements are Made Annually
– One in November
– One in July
• Carriers Share in the Equalization Funds
Based on their Excess Empty Mileage
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Disbursement
• For Example, $1,000,000 is collected
– Road 1
– Road 2
– Road 3
– Road 4
15% Excess Empty
20% Excess Empty
50% Excess Empty
15% Excess Empty
– Total
100%
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$150,000
$200,000
$500,000
$150,000
$1,000,000
Questions?
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